So what is the easiest way to lower your automobile insurance rate? Raise your deductible! This is by far the easiest way to lower your automobile insurance rates.

I know you are saying to yourself, but the deductible amount is the price I have to pay in the event of an accident….why do I want to raise it and pay more?

Think about it for a minute. if you are a safe driver and have not made a claim in the last 7 years….you over paid for insurance big time if you carried less than a $1,000 deductible and you got hosed if you carried a less than $500 deductible.

Yes, you would have to pay $1,000 IF you had a claim and if your insurance company paid that claim. So, two things have to happen here, you have to have a claim to file….and you have to be at fault and your insurance company has to be liable for the claim.

If you had a claim but the other driver was at fault and their insurance paid that claim….you do not have to pay the deductible amount. If you have not had a claim in awhile and don’t drive like a mad man…you could pocket a lot of money savings from raising your deductible to $1,000.

Second best way to lower your automobile insurance rate is checking! Sounds very simple I know, but have you compared auto insurance rates in the last 3 years? if you have not, chances are high you are over paying by at least 20%.

Insurance agents fight over new clients, and they want that new client to stay with that company for at least 3 years, but after that your “new” wears off and they slowly start to tighten the screws and increase your rates.

If you get online, fill out one quote form and get a few phone calls or emails from agents looking to get you as a new customers….they will bend over backwards for your business. You can then work those new quotes you got online against the new agents and have them get into a bidding war for your business.

One word of caution, make sure they don’t just cut the coverage to cut the premiums. Make darn sure you are comparing the same coverage and same limits.

Compare quotes from up to 12 of the top auto insurance companies and select the one that is best for you!

Car Insurance Information Needed for Online Quoting

1. Expiration Date – The expiration date is critical because it proves that your insurance has not expired and that will qualify you for a preferred rate with most companies. If your insurance has expired then you may be underwritten into a substandard carrier and those rates are higher.
2. Driver Information – All resident relatives that have a driver’s license need to be rated on the policy. You will need to enter the name, date of birth, and driver’s license number.
3. Driving Record – Accidents and violations need to be disclosed to pre-qualify you for the insurance. This needs to be accurate because insurance companies will find out about your driving record anyway. They check motor vehicle reports from your state as well as your prior carrier.
4. Vehicle Information – You will have to list each vehicle on the policy. You will need the vehicle identification number for each vehicle. That number will give the insurance company the pertinent information that it needs to discount the vehicle for air bags, anti-lock brakes and other safety features.
5. Current Coverage – Use your declarations page to list all of the coverage that you currently have on all vehicles. This will include liability limits, first party benefits and physical damage limits.

Rating Factors:

1. Geographical Area – You have no control over the driving experience in your own back yard. That still doesn’t negate the fact that your neighbors can affect your rates. The higher frequency of accidents in your area will increase the rates. The severity of accidents will also affect your rate. You will often find higher frequency fender bender accidents in the inner city while the rural areas may have more severe accidents because of higher speeds traveled on the open highways.
2. Vehicle Types – Older vehicles with physical damage are obviously cheaper. Sports cars and expensive sport utility vehicles will increase the rate.
3. Young Driver Discounts – Some companies have discounts for good students with a 3.0 grade point average along with a drivers training discount. When you put the two together it can be significant.
4. Retired Discounts and Mature Driver – Some companies have retirement discounts and mature driver discounts to lower the rates for senior citizens.

These are just some of the many possibilities. Ask about available discounts when shopping for car insurance. Consider the area in which you live and adjust with the types of vehicles you purchase and how you arrange your coverage. Educate yourself more than you have before and you will help your cause.